KKR's investment in the five-year fund provides a long-term
stable source of financing for Sino-Ocean, as property
developers face a tighter credit environment in China brought on
by government concerns about overheating.

Sino-Ocean and KKR will use the fund, Sino Prosperity Real
Estate Fund L.P., to invest in mid- to high-end residential
developments, but can invest in other projects throughout China
through outright ownership, joint ventures or M&A.

Sino-Ocean and KKR have each agreed to make a capital
commitment of $70 million to the fund, they said.

The fund will make its first investment in Great Wise
Investment, a Sino Ocean project in Dalian. The project is
developing middle-income residential apartments which will sell
for around $150,000 to $200,000, according to a source familiar
with the matter.

Sino-Ocean is investing in the fund through its subsidiary
Gemini Investments Holdings and KKR is investing through its $1
billion KKR China Growth Fund L.P.

The source declined to be named because he was not
authorised to speak to the media.
(Editing by Helen Massy-Beresford)